Are our electricity prices one of the highest in the world?

Claim: Singapore’s electricity prices are one of the highest in the world.

Fact: Benchmarking studies regularly commissioned by the Energy Market Authority (EMA) show that our regulated tariff for households is comparable to that of similar cities around the world. Our tariffs are neither the highest nor the lowest. This is due to several reasons.

Around 95% of Singapore’s electricity is generated using imported natural gas. We are thus affected by price movements in the global energy market. Since September 2021, the world has been facing an energy crunch arising from unexpected strong demand for energy and a number of supply disruptions. At its peak, the price of liquefied natural gas was more than triple the levels at the start of 2021.

Other cities may have access to their own sources of fuel for their electricity resulting in lower costs. These may include renewable energy sources, or coal. Coal for instance may be cheaper but more pollutive.

The graphic below shows data from the benchmarking study commissioned by EMA. (The latest available electricity price data is up to 2019.)

Why don’t we subsidise the price of electricity?

We do not subsidise electricity prices because:

1. Subsidising prices benefits those who use more electricity; and

2. It is also not sustainable in the long run, given that fuel is imported and subject to global pricing.

Instead, we seek to keep electricity prices fair and reasonable through regulation and market competition.

Is anything done to help Singaporeans cope with their electricity bills?

The Government supports lower-income households through the U-Save rebates.

For example, the annual U-Save rebates for 2021 range from $595 for 1- and 2-room flats, to $355 for Executive/Multi-Generation Flats.

Please refer to MOF website for the latest information regarding U-Save rebates.